The Taxberg
Net pay
Tax the employer pays
Tax you pay
Total tax paid
Did you know your employer also pays tax on your salary? It costs the employer $6,188 to pay you $75,000. In other words, every time you spend $10 of your hard-earned money, $3.43 goes to the government.
Real tax rate
So, with you and the employer both paying tax, what used to be a 26.1% tax rate now rises to 31.7%, meaning your real tax rate is actually 5.6% higher than what it seemed at first.